Canaccord starts ‘well positioned’ Stride with a Buy

As previously reported, Canaccord analyst Jason Tilchen initiated coverage of Stride (LRN) with a Buy rating and $94 price target. The education sector was slow to embrace the same technological advancements that have impacted nearly all facets of life, but the pandemic increased awareness, acceptance, and adoption of new digital solutions, with EdTech’s share of the $6.4T global education and training market increasing from 2.8% in 2019 to 5.1% in 2023, notes the analyst, who expects this momentum will persist with EdTech spend growing more than twice as fast as total education and training expense over the next decade. In that context, the firm contends that both Stride and Udemy (UDMY) are well positioned to benefit from this trend toward online learning.